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3Com`s cost-cutting reaps dividends

Tracy Burrows
By Tracy Burrows, ITWeb contributor.
Johannesburg, 16 Jul 2001

Connectivity solution provider 3Com says last year`s cost-cutting and restructuring exercise is paying dividends, with dramatically increased market share in Gigabit Ethernet and Ethernet Switching.

[VIDEO]Chris van Niekerk, new 3Com country manager for Sub-Saharan Africa, attributes the increased market share to 3Com`s foresight in restructuring early, and to the affordability and quality of its products.

Recent market studies by research firm Cahners In-Stat in Phoenix, Arizona, indicate that 3Com Corporation has increased its leadership position in the Gigabit Ethernet over Copper switch market by almost 8% for the first quarter of 2001.

3Com now holds 35.7% global market share, approximately 10% higher than the second-placed vendor and significantly ahead of other competitors. 3Com has shown consistent growth in this market over the last three quarters.

[VIDEO]Research by The Dell`Oro Group of Redwood City, California, indicates that 3Com Corporation has earned the highest growth rate worldwide in Gigabit switched Ethernet shipments, at 131% quarter-to-quarter in the firm`s Q1 2001 Ethernet Switch Report. This growth enabled 3Com to increase its market share to 19.2%, while competitors` shares declined.

Dell`Oro also reports that 3Com`s market share in 10/100Mbps unmanaged switched Ethernet grew to 20.2%. This puts the company at number two in these key market categories.

In the area of networked , 3Com the number one market position for networked telephony system shipments, with a 30% global market share for the first quarter. Its total market share in the US grew to 74%, and worldwide share grew to 53%.

The company attributes this strength to ongoing adoption of enterprise IP telephony systems.

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